Need business and finance help with the current investment that mature in 2 years for $30,000

Business & Finance
Tutor: None Selected Time limit: 1 Day

Your current investment will mature in 2 years for $30,000, at which time you will reinvest the funds for 10 more years at 7% per year.  What will be the value of your investment at the end of the 12th year?

Dec 16th, 2015

Thank you for the opportunity to help you with your question!

Answer:

A = $ 55,200.00

Equation:

A = P(1 + rt)


Calculation:

First, converting R percent to r a decimal
r = R/100 = 7%/100 = 0.07 per year,
then, solving our equation

A = 30000(1 + (0.07 × 12)) = 55200 
A = $ 55,200.00

The total amount accrued, principal plus interest,
from simple interest on a principal of $ 30,000.00
at a rate of 7% per year
for 12 years is $ 55,200.00.


Please let me know if you need any clarification. I'm always happy to answer your questions.
Dec 16th, 2015

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